For-profits and the G.I. Bill

More than 36 percent of the tuition payments made in the first year of the program — a total of $640 million in tuition and fees — went to for-profit colleges, like the University of Phoenix, according to data compiled by the Department of Veterans Affairs, even though these colleges serve only about 9 percent of the overall population at higher education institutions nationwide.

As the money flows to the for-profit university industry, questions are being raised in Congress and elsewhere about their recruitment practices, and whether they really deliver on their education promises. Some members say they want to place tighter limits on how much these colleges can collect in military benefits, a move certain federal officials say they would welcome.

These questions come as the for-profit education industry is under increased scrutiny, with the Department of Education proposing regulations that would cut off federal aid to colleges whose graduates have extremely low loan repayment rates.